The Relationship Between the Elasticity of Product Demand and the Elasticity

question 212

Multiple Choice

The relationship between the elasticity of product demand and the elasticity of demand for labor employed in its production is such that, other things being equal,

• A) the more elastic the demand for the product, the less elastic the demand for labor.
• B) the more elastic the demand for the product, the more elastic the demand for labor.
• C) the elasticity of product demand only affects the elasticity of labor demand when the product market is purely competitive.
• D) if product demand is perfectly elastic, labor demand will be perfectly inelastic.

Understand the principles of crafting effective definitions, including avoiding circularity, vagueness, and obscurities.

Identify the use of negative terms in definitions and when they are acceptable.

Distinguish between logical, obscure, metaphorical, and vague definitions.

Recognize the importance of the genus and differentia in creating definitions.

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Definitions:

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks, which afford certain rights like voting and receiving dividends.